Walgreens Boots Alliance Inc (WBA)
Profitability ratios
Return on sales
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 18.61% | 18.91% | 19.38% | 19.75% | 20.14% | 20.80% | 21.33% | 21.86% | 22.13% | 21.61% | 20.54% | 19.61% | 18.61% | 18.38% | 18.75% | 19.51% | 20.60% | 21.34% | 22.06% | 22.40% |
| Operating profit margin | -9.79% | -0.54% | -4.93% | -5.30% | -5.30% | -4.55% | 1.05% | 2.32% | 3.38% | 3.10% | 1.71% | 1.49% | -0.56% | -0.34% | 0.77% | 0.80% | 2.89% | 3.20% | 3.50% | 4.06% |
| Pretax margin | -5.11% | 0.06% | -3.53% | -3.84% | -3.73% | -3.55% | 3.25% | 4.59% | 5.59% | 5.64% | 2.35% | 1.88% | -0.45% | -0.42% | 0.58% | 0.66% | 2.78% | 3.02% | 3.34% | 4.08% |
| Net profit margin | -4.18% | 0.40% | -2.20% | -2.42% | -2.35% | -2.23% | 3.27% | 4.01% | 4.65% | 4.79% | 1.86% | 1.67% | -0.45% | -0.49% | 0.33% | 0.55% | 2.53% | 2.71% | 2.92% | 3.55% |
Walgreens Boots Alliance Inc has experienced fluctuations in its profitability ratios over the past few quarters. The gross profit margin has been gradually declining from 22.40% in November 2019 to 18.61% in February 2024, which indicates a decreasing trend in the company's ability to generate profit after accounting for the cost of goods sold.
The operating profit margin also shows a volatile pattern, with a notable decline from 4.06% in November 2019 to -9.79% in February 2024. This suggests that the company's operational efficiency in generating profit from its core business activities has been under pressure.
Similarly, the pretax margin and net profit margin have exhibited fluctuations, with both showing negative values in recent quarters. The pretax margin decreased from 4.08% in November 2019 to -5.11% in February 2024, while the net profit margin declined from 3.55% to -4.18% over the same period. These declining trends in profitability ratios indicate challenges in maintaining profitability and controlling costs within the organization.
In conclusion, Walgreens Boots Alliance Inc faces profitability challenges as evidenced by the declining trend in its gross profit margin, operating profit margin, pretax margin, and net profit margin. The company may need to implement strategic initiatives to improve efficiency, control costs, and enhance profitability in the future.
Return on investment
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -16.79% | -0.79% | -7.12% | -7.36% | -7.06% | -6.51% | 1.54% | 3.36% | 4.93% | 4.31% | 2.88% | 2.22% | -0.86% | -0.53% | 1.23% | 1.29% | 4.44% | 4.82% | 7.05% | 8.04% |
| Return on assets (ROA) | -7.17% | 0.59% | -3.19% | -3.36% | -3.13% | -3.19% | 4.81% | 5.80% | 6.78% | 6.66% | 3.13% | 2.49% | -0.68% | -0.78% | 0.52% | 0.88% | 3.88% | 4.08% | 5.89% | 7.02% |
| Return on total capital | -32.39% | 2.43% | -15.48% | -15.81% | -15.11% | -15.13% | 13.11% | 17.75% | 22.12% | 22.52% | 13.23% | 11.89% | -0.14% | 0.01% | 4.34% | 4.58% | 13.03% | 13.96% | 15.05% | 17.17% |
| Return on equity (ROE) | -44.77% | 2.95% | -15.38% | -15.74% | -14.84% | -14.41% | 17.16% | 20.49% | 23.55% | 24.48% | 10.85% | 10.35% | -2.92% | -3.47% | 2.21% | 3.67% | 14.73% | 15.65% | 16.93% | 19.96% |
Walgreens Boots Alliance Inc's profitability ratios have shown fluctuations over the past few quarters. The Operating return on assets (Operating ROA) has been negative in recent quarters, indicating the company's operating profit generated per dollar of assets has been insufficient. The Return on assets (ROA) has also been negative in some periods, pointing to the fact that the company's overall profitability from its assets has been subpar.
The Return on total capital and Return on equity (ROE) have also displayed variability. The Return on total capital has been negative in certain periods, which suggests that the company's ability to generate returns from all its capital employed has been challenged. The Return on equity (ROE) has experienced ups and downs, reflecting the company's profitability with respect to shareholders' equity.
The overall trend indicates that Walgreens Boots Alliance Inc has faced challenges in maintaining consistent profitability levels, possibly due to various internal and external factors impacting its business operations. Further analysis would be needed to identify specific drivers behind these fluctuations and to formulate appropriate strategies to improve profitability going forward.
See also:
Walgreens Boots Alliance Inc Profitability Ratios (Quarterly Data)